Vietnamese electric car maker VinFast debuts on Nasdaq

NEW YORK, UNITED STATES — Vietnamese electric vehicle (EV) maker VinFast made its debut on the Nasdaq Tuesday after being merged into a publicly traded investment vehicle.

Shares of VinFast, trading under the ticker “VFS,” jumped more than 31 percent to US$28.90 shortly after midday, after entering the market at US$22 a share.

Prior to its debut, VinFast had priced the shares at $11.50 apiece, according to a securities filing Monday night. The company estimates a total valuation of US$23 billion.

“Today’s successful listing not only supports VinFast’s commitment to sustainable mobility at a global scale but also unlocks access to the capital markets and important avenues for future development,” said Chief Executive Le Thi Thu Thuy in a statement.

VinFast, which is part of conglomerate Vingroup, owned by Vietnam’s richest man Pham Nhat Vuong, broke ground last month on a new EV manufacturing facility in the state of North Carolina, the company said in a press release.

The Nasdaq debut came after VinFast completed its merger with Black Spade Acquisition on Monday.

Black Spade is a “blank check” company, or a special purpose acquisition company (SPAC) introduced to public markets with the sole purpose of merging with an operating company.

There have been fewer transactions with SPAC entities following big market drops by some companies that went this route, including other EV startups.

Thuy told CNBC VinFast opted for a SPAC due to challenges in the traditional initial public offering market, saying “It’s just a way for us to get listed in the US.”

— AFP